Gnosis is a fairly unique cryptocurrency that uses the Ethereum blockchain. Traders looking for new markets have had their eye on this digital coin recently. This guide will show you how to buy Gnosis (GNO) and how to trade it in 2020.
Compare where to buy Gnosis Coin, and open an account
Read on to find out about Gnosis and how it works or jump ahead to our step-by-step buyers guide if you’re ready to buy GNO.
What is Gnosis?
Gnosis was founded in 2015 and is a decentralised platform for making predictions, meaning it can be used to bet on the outcome of various events including stock values, elections and sports events. The GNO token is the primary cryptocurrency used on the Gnosis platform.
Gnosis currently has a circulating supply of just over one million coins and a fixed supply of ten million coins.
How does Gnosis work?
Gnosis came about when two college friends, Martin Köppelmann and Stefan George, had an idea for a decentralized prediction market. Prediction markets are markets created for the purpose of betting on the outcome of events.
Most prediction markets operate through a central authority that creates the markets itself, which isn’t necessarily a bad thing, but it can leave them vulnerable. For that reason, Gnosis is decentralised and offers users the chance to create a market themselves and link it to an event. Once the market is established, users can then bet on the event through that market.
How to buy Gnosis online – step-by-step guide
Step 1. Get a suitable wallet
As Gnosis (GNO) is a decentralised cryptocurrency, it makes sense to look at non-custodial wallets that are designed with decentralisation at their core. There aren’t too many out there at the moment, but here are a few of our favourites:
- Coinbase Wallet: Unlike custodial wallets of a similar nature, Coinbase Wallet stores private keys directly on your device so only you can access them.
- MetaMask: This browser extension allows users to run Ethereum dApps in Chrome and Firefox and is Android and iOS compatible.
- MyEtherWallet: MyEtherWallet has been around for a while and was one of the first Ethereum non-custodial wallets available.
Step 2. Find a Gnosis exchange
Keeping decentralisation in mind narrows the field when it comes to choosing an exchange. However, there are still plenty of decentralised exchanges to buy Gnosis:
- Idex: A US-based decentralised exchange designed to give users the same options and advantages of a centralised exchange without compromising on security or user control.
- Uniswap: Committed to offering users free and decentralized asset exchange, Uniswap is a simple, open-source protocol for automated token exchange on Ethereum.
The most active exchange to buy Gnosis right now is Bittrex, but this exchange is not decentralised.
Step 3. Withdraw your Gnosis
To maximise the security of your cryptocurrency, it’s best to withdraw it from the exchange as soon as you buy Gnosis. After setting up your wallet, how you withdraw your currency largely depends on the exchange you’re using, but you should be able to see a withdraw tab or dropdown where you will find instructions.
How to trade Gnosis – step-by-step guide
There’s no need to set up a wallet if you’re not interested in buying Gnosis and only want to trade it as you won’t actually buy the currency to keep, instead you’ll be betting on fluctuations in its value.
Step 1. Find a broker
Finding a cryptocurrency broker for Gnosis can be tricky as there aren’t many to choose from. Ideally, you will have some time to have a look around and check out a few before you decide which one to go with.
Step 2. Deposit money
Once you’ve found a reputable broker, you’ll need to deposit some money. This money is what you will use to start trading. You may be able to find a broker that accepts fiat currency, but if not, you can easily buy and use Bitcoin for your deposit.
Step 3. Decide how you’d like to trade
When trading with a broker, you have two choices. You can either pick CFDs (contracts for difference) or Spread Betting. Both methods involve speculating on the value of Gnosis. If you’re not sure which option would suit you best, we recommend doing some homework and finding out more about each method.
Step 4. Start trading
As with anything new, it can take a while to get used to trading cryptocurrencies such as Gnosis. Fortunately, most brokers allow you to set up a demo account to test the waters before you begin.
Right now, Gnosis is garnering a lot of attention, but that doesn’t necessarily mean it’s a good time to get involved. Cryptocurrencies are volatile and hard to predict, so investors can lose money quickly. Gnosis has trended downwards since its launch and early investors who still have skin in the game are hoping for a turnaround that may or may not come.
Trading Gnosis is similar to trading other cryptocurrencies in that you either take a long (buy) or short (sell) position on the value depending on whether you think it will rise or fall.
- Gnosis is one of the most high-profile projects utilising Ethereum
- Great 3rd party developer support
- Gnosis developers have big plans for the future including the possibility of becoming blockchain agnostic
- The Gnosis user base is still quite small
- Hard to find a reputable broker
- Prediction markets can be difficult to get into for beginners